Terrorism

Terrorism has been a great issue since the September 11 attack in 2001. After the attack, US Terrorism Risk Insurance Act (TRIA), a US federal law, was created on November 26, 2002 (Terrorism Risk Insurance Act of 2002) and extended in 2005 and 2007 (Terrorism Risk Insurance Program Reauthorization Extension Act of 2007). TRIA is a US government reinsurance that provides coverage on terrorism for insurance companies. Currently, TRIA is set to expire on December 31, 2014.

Terrorism has been covered in our previous contracts. Since, our contract starts annually in March, TRIA would be expiring within our policy year. This leads us to one of the significant changes for the policy 2014/15. For our 2014/15 policy, only our lead layer of $100 Million with Lexington includes terrorism protection. OCI then purchase a stand-alone terrorism insurance on Lambeau Field from London Markets for an annual premium of $107,731. Lambeau Field is our property with the highest value and the highest probability of facing a terrorism attack. It has in total terrorism insurance protection of $600 Million from London Markets and Lexington.